The first half results for Roche Holding, the Swiss pharmaceutical giant, have been reported. The company's core earnings per share decreased to 10.10 Swiss francs ($11.73) in the first half, compared to CHF11.76 in the same period last year. Analysts had predicted core EPS to be CHF10.34.


Roche announced sales of CHF29.78 billion in the first half, showing a decline from CHF32.295 billion in the previous year. This decrease is mainly due to the declining demand for Covid-19 products. Analysts had estimated sales to be CHF30.15 billion.

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Roche has confirmed its outlook for 2023, forecasting a decline in sales within a range of low single percentage digits. The trajectory for core EPS is expected to be similar, as the company faces reduced sales of Covid-19 products. However, it is worth noting that this guidance may be slightly conservative at the revenue level. Stifel analyst Eric Le Berrigaud believes that Roche's diagnostics division, despite a 29% sales drop in the first half, could experience more favorable year-on-year comparative figures in the second half.


Roche highlighted that the appreciation of the Swiss franc against most currencies had a significant impact on its first-half results. While the company's reported sales fell 8%, the decline was only 2% at constant currency rates. Le Berrigaud emphasizes that the influence of currency fluctuations on reported numbers raises concerns about Roche's outlook and suggests there may be a risk of downgrades to consensus expectations.


There were no significant updates on Roche's research and development activities in the current results. Consequently, all eyes are now on an upcoming investor event focused on the company's pharmaceutical activities scheduled for September 11. As per Stifel analyst, this event will provide valuable insights into Roche's R&D efforts. In a separate note, analysts at Jefferies mention that they anticipate the second half of the year to bring incremental opportunities for existing products in Roche's pipeline.

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